Market Analysis

Ukraine could once again this year to grow by beer and alcoholic beverages. Yesterday the Supreme Rada were recorded bills proposed to increase the excise tax, resulting in vodka can rise in price at retail for more than UAH 3, and beer for 36 kopecks. But deputies insist on the need to increase revenues.

Yesterday in Parliament Bills have been registered number 5250 On Amending the Law on excise and import duties on some goods (an increase in the revenues of the State budget by increasing rates of excise duty on beer from malt) and the number 5251 On Amendments to the Law On rates of excise duty on ethyl alcohol and alcoholic beverages. They are invited from 1 December to increase the rate of excise duty on beer to 0,32 UAH /l to 1,2 UAH /l, and from 34 to 50 UAH per liter hundred percent alcohol.
The authors of both bills say the excessive consumption of alcoholic beverages in the country.

According to their data, the average citizen of Ukraine in the year drinks nearly 60 liters of beer. Over the past 10 years, beer alcoholics in the country has become ten times more ... Alcohol is the third leading cause of death in the country. And almost 40% of adolescents aged 14-18 years regularly consume alcohol, - said in the explanatory note to bills.

And beer, and alcohol should rise in price, because our people are losing themselves into drinking, - said one of the sponsors of the bills (BYT) Oleg Lyashko. We have analyzed the market neighboring countries - Russia, Moldova, Belarus and Poland - and came to the conclusion that we have a much lower rate, - said the people's deputy Sergei Sobolev (BYuT). In his opinion, because of higher excise taxes will stop the smuggling of alcohol from these countries.

excise taxes on beer and alcohol MPs propose to increase not the first time: June 23, the Verkhovna Rada adopted the Law on amending the laws On State Budget for 2009 and On the rates of excise and import duties on certain goods (products) .

As a result, from 1 July the rate of excise duty on beer was increased from 0,34 UAH /l to 0,6 UAH /l, and the spirit - with 21,5 grn /l to 34 UAH per liter. But 14 октября 47 deputies filed a petition to the Constitutional Court on the legality of raising excise tax on beer. Earlier in July, raising excise taxes on alcohol and alcoholic beverages challenged the deputies of the Party of Regions. The decision on the appeals pending.

According to the calculations of Deputies, as a result of the adoption of laws price of beer will rise by 36 kopecks., vodka - by 3.2 UAH (21%) for a bottle of 0,5 liters. This will increase state budget revenues at 1.8 billion UAH of excise tax on beer and on 2.9 billion UAH - from the excise tax on alcohol assuming the current sales.

Market participants believe such a significant, and most importantly a sharp increase in excise tax a blow to business. After the July increase excise rates on 58% of the legal market has dipped, - says Director of Legal Affairs Khortytsa distillery Gennady Vasyukov. In Nemiroff noted that up to raise excise shadow vodka market was about 20% of total sales. If the bill in the shade will be more than half market forecasts vodochniki. From January to September, the volume of secondary sales of beer had fallen to 20,4% compared with last year, - said Executive Director of the Association Ukrpivo Igor Tovkach.

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